Moody was born in Richlands, Tazewell County, Virginia. He received his B.A., Haverford College, Haverford, Pennsylvania, in 1957; M.P.A., Harvard University, 1967; Ph. D., University of California, Berkeley, 1973. After college he did stints in the Peace Corps and CARE assignments in Yugoslavia, Iran, and Pakistan, 1958–1965. After that he returned to the United States as an Economist for Federal Government, 1967–1969. He was an associate professor of economics at the University of Wisconsin-Milwaukee, 1973–1976.

Following a special election, Moody was elected to the Wisconsin Assembly, where he served from 1977–1978. The following year, he was elected to the Wisconsin State Senate, 1979–1982. He was elected as a Democrat to the 98th and to the four succeeding sessions of Congress (January 3, 1983–January 3, 1993). In 1988, he launched a U.S. Senate bid to succeed retiring Senator William Proxmire. Right before the filing deadline, Moody surprised many, including ally Matt Flynn, and chose not to file against multi-millionaire Herb Kohl. Moody was not a candidate for renomination in 1992 to the 103rd Congress. He was an unsuccessful candidate for nomination to the United States Senate in 1992. Initially, Moody was the favorite until he got into a nasty primary battle with attorney Joe Checota, allowing State Senator Russ Feingold to defeat them both. Moody was a delegate at every annual Democratic Party of Wisconsin Convention from 1977–2004.

As of 2006 he was a visiting professor at the Health Policy Institute, Medical College of Wisconsin, Wauwatosa and a resident of Bethesda, Maryland.

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